NEW YORK, April 29, 2013 /PRNewswire/ -- The Dreyfus Corporation, a BNY Mellon company, announced today that it had successfully completed the initial public offering of common shares of Dreyfus Municipal Bond Infrastructure Fund, a new closed-end fund. The offering was conducted by a group of underwriters led by Morgan Stanley & Co. LLC, Citigroup Global Markets Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated. The fund issued 16,950,000 shares at an initial price of $15 a share resulting in gross proceeds of $254.25 million, excluding any exercise of the underwriters' option to purchase additional shares. If the underwriters exercise the option in full, the fund will have raised $292.31 million.
The Fund, which began trading on Friday on the New York Stock Exchange under the symbol "DMB," seeks to provide investors as high a level of current income exempt from regular federal income tax as is consistent with the preservation of capital. "We are excited about the opportunity to offer the first closed-end fund that focuses on municipal infrastructure bonds," said Dreyfus President Charlie Cardona. "The U.S. is at a critical juncture in repairing and maintaining a rapidly aging infrastructure, which municipal revenue bonds have historically helped finance."
The Fund, which is sub-advised by Standish Mellon Asset Management Company LLC, is managed by Christine L. Todd, President of Standish, Jeffrey Burger, Daniel Rabasco and Thomas Casey. Ms. Todd stated, "We believe investing in municipal infrastructure bonds provides investors with an opportunity to seek a high level of federally tax free income while participating in the rebuilding of America's infrastructure. The closed-end fund structure, in our view, is particularly suited for this type of investing given the importance of active management and liquidity characteristics of many municipal bonds."
The Fund is a newly organized, non-diversified, closed-end management company with no operating history. Shares of closed-end investment companies, such as the Fund, typically trade on a national stock exchange, and these shares frequently trade at a discount to their net asset value, which may increase investors' risk of loss.